Cookie Jar Reserves – are savings from previous quarters that a
company records as earnings in subsequent quarters to make it
appear that its earning was higher than they really were.
There was a study undertaken to focus on financial statement fraud
by The Blockholders, what was found was within 6 different cases
shareholders received private benefits at the expense of minority
shareholders. Companies with fraudulent firms controlled by
blockholders end up going bankrupt over companies who are not
controlled, this could show that the cookie jar strategy was used in
this case. The only plausible explanation of why certain shareholders
received more than the earned amount is if earning for a certain
period where higher than expected.
https://www-emerald-
com.ezproxy.snhu.edu/insight/content/doi/10.1108/JFC-05-2021-
0113/full/pdf?title=the-dark-side-of-blockholder-control-evidence-
from-financial-statement-fraud-cases
